Citi cuts Hims & Hers stock price target to $25 from $27

On Friday, Citi analyst Daniel Grosslight revised the price target for Hims & Hers Health, Inc. (NYSE:HIMS) to $25.00, a decrease from the previous $27.00, while maintaining a Sell rating on the company’s stock. Grosslight anticipates that the company will surpass earnings estimates but also expects to witness a continued deceleration in its core revenue growth.

Grosslight’s assessment suggests that Hims & Hers’ next financial results will likely show a significant beat and raise, primarily due to the strong performance of GLP-1 products. Despite these positive earnings, the analyst predicts that the stock may not see an upward movement. He attributes this to a series of factors that could dampen investor enthusiasm, including a projected slowdown in the company’s fundamental revenue growth.

The concerns highlighted by Grosslight include potential issues with Hims & Hers’ personalized GLP-1 strategy. Additionally, a weakening consumer environment and the possibility of new pharmaceutical tariffs are seen as potential risks that could influence the stock’s performance negatively.

The Citi analyst’s comments reflect a cautious stance on the company’s stock, suggesting that while Hims & Hers may deliver impressive earnings, broader market and strategic concerns may overshadow these results. The revised price target of $25.00 reflects these apprehensions and the anticipated impact on the stock’s value.

Investors are advised to monitor Hims & Hers’ upcoming earnings report and consider the factors mentioned by Grosslight that may affect the company’s stock price. As the market responds to these developments, the performance of Hims & Hers shares will be closely watched in the context of the analyst’s predictions.

In other recent news, Hims & Hers Health has been navigating several developments that may impact its business operations. The company received a warning letter from the FDA concerning its compounded topical finasteride products, noting safety concerns such as serious side effects and the potential for inadvertent exposure to others. This warning does not halt sales but raises questions about the future of these products. BofA Securities maintained an Underperform rating with a $22 price target, citing potential churn if patients switch to oral alternatives, though they acknowledge Hims & Hers’ strong brand recognition. Additionally, Jefferies raised its stock target to $25, maintaining a Hold rating, while noting the company’s shift to branded GLP-1 medications and the associated legal and customer retention challenges.

The company is also undergoing a leadership transition, as Chief Operating Officer Melissa Baird will move to an advisory role. This change was disclosed in an 8-K filing, and the company is currently searching for her successor. Analyst Glen Santangelo from Jefferies expressed concerns about the regulatory scrutiny of the company’s combination medications and highlighted a slowdown in core offerings’ growth. Despite these challenges, Hims & Hers’ first-quarter online revenue projections remain strong, estimated between $567 million and $601 million, exceeding the Visible Alpha consensus of $528.4 million. However, analysts caution that meeting ambitious growth targets for the second half of 2025 might prove difficult.

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